“I Don’t Need to Report Side Hustle Income Under $30K” — That’s Not True
You might think, “I earned only $20K from my Etsy store—no need to report.” But in Canada, all income you earn from a side hustle counts as taxable, regardless of amount. The $30K rule refers only to when you must register for GST/HST, not whether you file income tax.
Report All Income to the CRA
If you're self-employed—including gig work, freelance, side sales, or rentals—you’re required to report all your gross income, regardless of the amount. That means even $500 counts. Use Form T2125 (Statement of Business or Professional Activities) on your T1 General return.
What the $30K Threshold Actually Means
The $30,000 threshold applies only to GST/HST registration:
If your gross revenue exceeds $30,000 in four consecutive calendar quarters, you must register for GST/HST.
Below that, there's no requirement to charge, collect, or remit sales tax.
However, once registered, you must continue charging GST/HST—even if revenue dips below the threshold later.
Why People Get Confused
They assume tax filing only matters when an amount exceeds a threshold.
They see the $30K rule and think “I don’t owe anything”—but it is not about income tax.
They miss out on RRSP room, credits, and could raise CRA flags by not filing.
What You Should Do
Report all side hustle income on Form T2125—even if it’s below $30K.
Track gross income vs net profit—you only pay tax on profits, not revenue.
If you exceed $30K in gross revenue (not profit), register and charge HST.
Keep receipts for business expenses—home office, supplies, vehicle, etc.—to reduce your taxable income.
Final Takeaway
No matter how small, every bit of income from your side hustle must be reported to the CRA. The $30K threshold affects sales tax, not income tax. Reporting accurately helps you build HST input credits, RRSP room, and avoids trouble if CRA audits you.
If you’re juggling a side hustle in the Greater Toronto Area, I can help you track, file, and optimize—while ensuring you stay compliant. Let’s make it simple and stress-free.
